AHDB Pork Country Reports

BPEX / AHDB Country Reports - Italy January 2013

Italy is the largest net importer of pig meat in the EU and, as a result, is a key market for many exporting
Member States. It is also the sixth largest pig meat producer in Europe, partly because its pigs are finished
to much heavier weights than elsewhere. The size of its population and consumer preference for pig meat
makes it the third largest consumer of pig meat in the EU after Germany and Spain. Although its exports
are limited, they do include speciality products such as Parma Ham.

Pig Numbers

According to the latest pig census, the overall Italian
pig herd was little changed between May 2011 and
May 2012 at 9.3 million head. However, there was a
sharp decline in the breeding herd, with sow numbers
down by 13 per cent over the year, following an eight
per cent decline the previous year.

There were significant movements in different
categories of pigs being raised for slaughter but this
may be down to changes in classification since the
overall total of such pigs was up by just one per cent.
Numbers have been boosted by somewhat higher
weaner imports, which have helped to offset the
declining breeding herd. Improved productivity and
slightly heavier carcase weights have also contributed
to the increase.

Italian Pig Numbers, May

Source: Eurostat

Production

Italian pig slaughterings in the first five months of 2012
were four per cent higher than in the same period of
2011. However, supplies began to tighten from June
onwards, with throughputs in the next three months
down by three per cent. This was partly due to hot
weather which reduced growth rates so pigs were slower coming to slaughter. This meant that the total
for the first eight months was up by just under two per
cent at 8.4 million head. Heavier carcase weights
meant that pig meat production was up by over two
per cent at 1.1 million tonnes.

Italian Pig Slaughterings

Source: Eurostat

Trade

Italy is the largest net importer of pig meat in the EU.
During the first eight months of 2012, it imported six
per cent less fresh and frozen pork than during the
same period last year; shipments during the period
totalled 605,000 tonnes. Reduced production across
most Member States contributed to the lower
shipments, with the difficult economic situation in Italy
also weakening demand somewhat. The only major
supplier which sent more pork to Italy was Spain, which
had increased supplies due to a rise in slaughterings. Its
shipments rose by more than a quarter.

Italy is also a significant importer of live pigs, with
shipments up by one per cent to 726,000 head in the
first eight months of 2012. Weaners made up threequarters
of the total and numbers were up by nine per
cent, partly compensating for lower numbers from
Italian breeders due to the decline in the breeding
herd. The growth was largely due to increased shipments from Denmark. Slaughter pig imports were
down 15 per cent to 166,000 head.

January – August

Source: Istat, GTIS

Prices

Italian pig reference prices tend to be among the highest
in the EU. This partly reflects the much higher carcase
weights which are typical in Italy, meaning that fewer
pigs fall in the range for the reference price and that
production costs are higher than elsewhere in the EU.
With supplies plentiful in the early part of the year,
prices eased back and briefly fell below their level a year
earlier during May, reaching a low point of just over
€160 per 100kg. However, as supplies tightened over the
summer, prices began to increase rapidly. This increase
began about a month earlier than in the rest of Europe
and resulted in prices increasing by nearly a third to
peak at almost €220 per 100kg in mid October. Prices
have since fallen back to reach just under €200 in late
November.

Italian weaner prices have remained well above year
earlier levels throughout 2012. Prices peaked at around
€73 per head in April before falling back rapidly to reach
a low point of fractionally under €60 in September.

Italian Pig Reference Prices

Source: EU Commission

This was partly a seasonal development but the fall
was sharper than normal as a result of higher feed
prices. Nevertheless, average prices remained over six
euros higher than in the equivalent period last year.
Prices have since recovered some of the lost ground,
reaching around €65 per head in late November.

Outlook

Despite increased slaughterings in the early months of
2012, tightening supplies are likely to mean that
throughputs for the year as a whole are likely to be
little changed. The modest increase in carcase weights
earlier in the year may not be sustained due to slow
growth weights over the summer. Therefore, pig meat
production for the full year may be only marginally up
on last year’s level. Despite this, higher prices and
economic difficulties are likely to constrain consumer
demand, leading to lower consumption of pig meat.

Given the further decline in the breeding herd
recorded by the census, improved productivity and
higher weaner imports are unlikely to be sufficient to
prevent a decline in slaughterings in 2013. High feed
prices may prevent any further increase in carcase
weights, so the production decline should be in line
with the fall in slaughterings. Consumer demand is
likely to remain subdued, with ongoing economic
problems and prices set to remain high. Therefore, the
fall in production is unlikely to lead to any increase in
pig meat imports.